I use two layers: one with the text (and clip my paper to this layer) and the other with a stroked work path from the text shape for the outline. That's done by simply selecting the text with a magic wand (uncheck contiguous for one-click selection here!) and right-clicking to select create work path. Then set up your brush size and color with a fairly hard edge, adjust spacing if you want to do dots or dashes, make a new layer, go to the paths panel, right-click your work path and select Stroke Path... Select Brush as the tool to use in the popup dialog.

Both this method and Marisa's will work equally well; this just seems faster to me, and using a path to stroke the edges means it's a vector base so jaggies only happen if you convert the layer to raster and then resize it. This works well for things like stickers and tag outlines too. (Plus if you stroke both layers in different widths, you can come up with some interesting stacked stroke effects that look like they took hours of work!)

Alternative method #2: Do a layer effects on your text layer with Pattern Overlay and a pattern you've got installed in Photoshop, then add a Stroke to it. Somewhat more limited than the others, but can work well for patterned letters with a simple stroked edge. Playing with the Bevel and Emboss settings and the Texture Overlay settings can give you some decent variety, though not quite what two layers can do.